‘You About To Lose ‘Yo Job:’ Citi Banker Accidentally Wires $900M To Revlon Lenders & Judge Let’s Them Keep It!
Someone please queue up the viral meme of the woman singing, “You about to lose ‘yo job!” Especially since an unnamed Citi banker is facing scrutiny for accidentally wiring $900M to Revlon lenders, and now a judge is letting them keep it!
Apparently, Citigroup, who is acting as Revlon’s loan agent, accidentally sent out $893 million to Revlon’s lenders, reportedly to pay off the makeup company’s debt, which wasn’t due until 2023. However, the amount really due to be wired was only for a $7.8 million interest payment. While some of the lenders refunded roughly $400 million, 10 asset managers declined, leading to Citigroup’s lawsuit to recover an estimated $501 million — they argued the lenders knew it was an accident and they couldn’t afford the payment.
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However on August 11 of last year, .S. District Judge Jesse Furman in Manhattan decided that the money wired was “final and complete transactions, not subject to revocation.” While siding with the lenders, Judge Furman added that they “believed, and were justified in believing, that the payments were intentional. To believe otherwise—to believe that Citibank, one of the most sophisticated financial institutions in the world, had made a mistake that had never happened before, to the tune of nearly $1 billion—would have been borderline irrational.” Citigroup still believes they are owed. Disagreeing with the judge they say, “We believe we are entitled to the funds and will continue to pursue a complete recovery of them.”
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